By on September 11, 2014

1024px-2014_Toyota_Corolla_LE_ECO

Although Toyota has previously looked to maximize capacity at its existing North American plants, a report by Bloomberg suggests that the company will depart from this policy and look to establish a manufacturing facility in Mexico, following the lead of Honda, Mazda and Nissan in the Japanese auto industry’s drive to localize production.

Currently, Toyota has a small facility in Tijuana that produces the Tacoma pickup from CKD kits, and has signed an agreement with Mazda for the automaker to build a subcompact car that will likely be branded as a Scion. But they are without a full-scale factory of their own, at a time when virtually every other auto maker is expanding into Mexico.

The Mexican expansion is seen as a necessary move for many auto makers, allowing them to expand capacity in the NAFTA zone while taking advantage of far lower labor costs and generous tax incentives. This has led to a boom in auto manufacturing in Mexico, with relatively little investment in traditional locations like the Midwest and Canada.

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75 Comments on “Toyota Next To Join Mexican Assembly Fiesta...”


  • avatar
    highdesertcat

    I wonder what caused this? Could it be the relentless effort to unionize the Southern States?

    In any case, great news for the Toyota shareholders. If this comes to pass, it will no doubt stimulate other transplants to move South of the Border.

    And if Toyota’s motivation to expand in Mexico came from the current UAW efforts to unionize the foreigners and transplants in the South, all those badly needed jobs for Americans were never realized in America because it was better to switch than have to fight the UAW.

    And maybe it’ll keep more Mexicans at home instead of coming over here, uninvited, to squat.

    • 0 avatar
      DeeDub

      Dude, step away from the Fox News. Mexican labor is cheaper than southern US labor, even non-unionized southern US labor. The UAW has nothing to do with it.

      • 0 avatar
        highdesertcat

        DeeDub, I don’t watch anything Fox; Bloomberg, CNBC, NBR, PBS and BBC are where I get my news on DishNetwork. I rarely get to watch TV but have to catch it on my DVR if I want to catch up.

        Sorry to bust your Uber-Left wing Democrat hate bubble, but I have for many years expressed MY hope that more manufacturers pack up their plants and move South of the Border down Mexico way. For obvious reasons; already regurgitated hundreds of times by different people frequenting ttac.

        And for a while even Ford, GM and Chrysler had a profitable, good thing going utilizing the provisions of NAFTA, building in Mexico.

        Good now to see Toyota, Mazda and others take the ball and run with it. Wish VW and Mercedes would do the same.

        It keeps more Mexicans home instead of coming over here.

        • 0 avatar
          DeeDub

          There’s definitely a hate bubble in the vicinity, but I don’t think it’s around me.

          • 0 avatar
            petezeiss

            There’s definitely a bubble in the vicinity but I don’t think it’s hate.

            HDC lives smack in the reconquista zone. Where do you live?

          • 0 avatar
            tresmonos

            petezeiss,
            reconquista zone? Really?

          • 0 avatar
            DeeDub

            So it’s cool for him to hate on “the furrners” ’cause there’s a lot of them in his area? Kinda like they hated on the Irish when a lot of them were immigrating here. And the Italians. And the Chinese. We’re a country of immigrants. That didn’t stop when *your* grandparents got here.

          • 0 avatar
            petezeiss

            http://en.wikipedia.org/wiki/Reconquista_%28Mexico%29

          • 0 avatar
            highdesertcat

            I think most people would realize the benefits that lower costs and higher profits mean for the owners and stockholders of any company.

            Few workers are keepers as the recent Great Recession illustrated in living color.

            The keepers are still employed. Employers actively seek keepers; actually CREATE jobs or slots for them. Hire them away from other companies.

            The non-keepers have been discarded and are standing in the welfare line.

            This article illustrates that even Toyota prefers to employ unskilled Mexican labor, and train them to do the job, over hiring the non-keepers in America. In America there are probably more unemployed than there are Mexicans in Mexico.

            That’s why tax-inversions are the corporate accounting soup du jour. It’s all about greater profits! Companies change their mailing addresses to outside the US, for greater profits.

            And that’s why I support places and businesses who are all about profits for the owners and shareholders. They’re the ones who took the chance. They’re the ones who should reap the benefits.

            Hey, as GM shareholder I made a lot of money at the time of my divestment by mid-2008, and I was grateful! Very grateful!!

            It’s all about the money. Ditto with Toyota, Mazda et al.

            That is just one of the many reasons I’m putting MY money behind Toyota and its products. After we receive our 2015 Sequoia later this year, we’ll be an all-Toyota family.

            ——————-

            petezeiss, I actually live in the Maquiladora zone, which (if you’re interested) is far greater than the reconquista zone.

            But in NM we’re helping the illegal aliens obtain drivers licenses, bank accounts and cars, and then send them on their merry way to the Blue States in the East.

            I must have sold more than 17 cars to illegals over the decades and helped them along in life in the United States.

          • 0 avatar
            highdesertcat

            DeeDub, both MY parents were immigrants. But they got here legally, with Visas. They just didn’t waltz across the border and squat.

            Try squatting in Mexico and see how well you like how they treat illegal aliens over there. It’s jail time! It’s no wonder they help them along to get into the US in the most expedient manner.

            We treat illegal aliens like royalty in America. Look at the facilities the illegals are housed in in Artesia, NM, at the FLETC. Or those in San Diego. Better than anything they’ve ever experienced!

            My youngest son is a Supervisory Border Patrol Agent in SW Texas and he’s lost count of all his personal money he has spent buying stuff for illegals apprehended by his agents, from Kotex to baby formula. And his agents do the same, out of their own pockets.

            Think about it dude! The more you post your hate, the more it becomes clear that you haven’t been exposed to what you claim to know about.

          • 0 avatar
            28-Cars-Later

            Obedience to federal immigration laws is soooo 20th century. Get with the times!

          • 0 avatar
            petezeiss

            “I actually live in the Maquiladora zone, which (if you’re interested) is far greater than the reconquista zone.”

            I’m interested now, never heard of it before. Thanks for the read topic. We in the Great Lakes area get many of your alumni, but what’re ya gonna do?

            If you can’t shoot ’em, scoot ’em.

        • 0 avatar
          tresmonos

          highdesertcat,
          You pollute the comment section with narrow sighted comments. Do yourself and all of us a favor and can it.

          • 0 avatar
            highdesertcat

            Thank you for reading and commenting tresmonos.

          • 0 avatar
            Mandalorian

            I quite enjoy highdesertcat’s comments. They’re insightful and on point.

            tresmonos’ on the other hand seem to just be picking on other commentors.

            BACK ON TRACK:

            I see no reason to believe a Mexican made car would be any better/worse than one made elsewhere in north america.

        • 0 avatar
          APaGttH

          Every red blooded American should celebrate every manufacturing job that goes to Mexico. It means one less illegal alien family coming to ‘Merica to TERK ERRRRR JOOOOOOooobbs!

          ;-)

        • 0 avatar
          Roader

          “Try squatting in Mexico and see how well you like how they treat illegal aliens over there. It’s jail time! It’s no wonder they help them along to get into the US in the most expedient manner.”

          Exactly. What we need is a North American Free Migration Act; a harmonizing of Mexican, US, and Canadian immigration law. That way retirees from the US and Canada would have exactly the same rights and privileges that Mexicans have in the US and Canada i.e., free emergency medical care, food stamps, Section 8 housing, drivers licenses, etc., etc., etc. Or the opposite: free immigration but zero, ZERO beni’s: no free emergency medical care, food stamps, Section 8 housing, drivers licenses, etc., etc., etc. except for taxpaying citizens. But the absolute right to live in whichever of the three countries you wish. I wonder how well that would go over in Mexico?

          • 0 avatar
            VoGo

            I’ve worked in Mexico for months at a time. No problem.

            Maybe we should focus on cars?

            Or at least be open to the possibility that Toyota will build cars in Mexico for actual Mexicans.

            Maybe the world doesn’t revolve around the US?

        • 0 avatar
          alsorl

          Highdesert.. It’s all good to have an opinion about labor issues in the U.S. But sometimes it goes to far and may come across as just plain anti- American worker or just hatred towards people that are not like yourself. It’s almost like a syndrome of some sorts that the anger comes and can be greater then the meat and potatoes of the discussion. And who cares the people that purchase corolla s don’t. Care about the final Assembly plant. If anything, a lot of Toyota drivers are so anti American worker they would rather have that corolla made in Mexico.

          • 0 avatar
            highdesertcat

            alsorl, I understand your point of view.

            I am neutral on the whole thing because I already know what MY new SUV/CUV will be and what my next truck will be; and they may very well be the last vehicles of my driving life. So I wanna go out with a smile.

            However, the government we, the people, have elected over the decades has been driving jobs out of America for many, many years, regardless of political party in power.

            In the prophetic words of the Reverend Dr. Jeremiah Wright, “America’s chickens have come home to roost!”

            And have they ever, with a vengeance, on many different fronts! But such is life in these United States.

            We Americans always get exactly what we deserve, because we vote for it, and in America, the majority rules.

            Now we see plant expansion in Mexico because of lower labor expense, greater profit potential for owners/shareholders, and Mexican Labor Unions kept at bay by the Mexican government that wishes to attract more jobs to Mexico.

            They are so poor Senor, that they will take any jobs they can get for their people, and the taxes they’ll pay.

            And of course there is NAFTA. Plenty of blame to go around there,just on the US side of the equation.

            So I am overjoyed at the prospect of more labor opportunities being created in Mexico to keep more Mexicans working there instead of coming over here.

            It isn’t going to work here in America, the expansion or opening of new plants.

            Tax laws and government-backed union interference just pose too much of a burden on employers, and it has been proven that the IRS targets those who wish to express their opinions on the matter that we are Taxed Enough Already.

            When Mazda headed South of the Border I expressed my hope that more OEMs would as well, because the UAW clearly does not appreciate the good that the transplants do for America UNLESS the UAW can secure a slice of that pie for themselves, forever.

            But given the UAW track record with the Detroit three that resulted in the death of GM and Chrysler, why would any automaker want to set up shop in America? Because even the South is no longer safe from, or free of, UAW harassment.

            So take my comments in the spirit they are given. I wish that America would be a better place for businesses, but I also understand that as long as we, the people, elect what we elect, tax laws will not be overhauled, and employers will continue to be harassed by unions in their relentless quest for an ever-greater slice of the employers’ profits.

            And as is always the case, industry, employers and the market will always attain an equilibrium driven by the market. If they can’t make it happen here, they’ll go elsewhere — like the Pharmas and Burger King with their tax inversions.

            I doubt seriously that many Corolla buyers will even consider that their new Corolla was made in Mexico, or give a second thought to ponying up and extra percentage for the UAW’s cut of the profits.

            (Sorry about the delayed response. I have a real life and there were many legal issues that had to be taken care of yesterday at the County Clerk and the Court House for my wife’s family business.)

    • 0 avatar
      APaGttH

      So how exactly does America compete with an average Mexican auto factory worker salary of – $3.65 an hour…

      http://www.mexicorepresentation.com/?cat=3

      …The work tends to be better paid than what could be found in the area before the companies arrived. It is still a fraction of the salaries of American workers — many employees on the factory floors in the interior port make around $3.65 an hour — but higher-paid professionals make up about 30 percent of the employees at many auto plants here, roughly twice as much as in the maquiladoras near the border.

      And although robotics and other changes have kept overall employment in the industry somewhat limited, more of the industry has moved to Mexico as the car business has recovered. Around 40 percent of all auto-industry jobs in North America are in Mexico, up from 27 percent in 2000 (the Midwest has about 30 percent), and experts say the growth is accelerating, especially in Guanajuato, where state officials have been increasing incentives…

      Yup. It’s all the union’s fault – you know HDC, if we just get rid of corporate taxes, medical care, and a minimum wage, we could actually compete.

      These jobs are going away – and unions have nothing to do with it. Ponder this the next time you buy a vehicle Heche en Mexico – $3.65 an hour an yet a stripper econobox in the US hovers around $20K today.

      Follow the money – it ain’t the UAW getting rich, or the workers in “right to work states.” But someone is getting rich.

      I’ll say it again, if the guy building the car can’t afford a new car, the system eventual breaks down. Even Aston Martin has a program to provide cars on incentive their employees. All Harley-Davidson employees get a Harley at five years of employment. But we all know what a crappy company Harley is – and my goodness a big dose of socialism that program at Aston Martin.

      • 0 avatar
        highdesertcat

        APaGttH, I actually agree with everything you wrote.

        I’m not anti-union. My parents were both union, once. And I believe it is up to the workers to decide for themselves if they want union representation, or not. It’s all about which philosophy the workers adhere to.

        But not so the endless assault by the UAW to gain a foothold at VW-TN, even though the employees there chose against a union. The UAW cannot take NO for an answer. This is an existential battle for the hearts and souls of the non-unionized autoworkers in America. First VW-TN, then M-B USA.

        But from the employers perspective? Given the track record of the UAW in America? I believe it factored in the decision to expand within the NAFTA zone without having to take on the UAW in America.

        If the UAW can’t have a slice of the pie in the Southern states, they will hound the manufacturers until the workers capitulate and unionize. To with: VW-TN.

        So, maybe, just maybe, more States will opt to go the Right-to-Work route like some of the more progressive states are doing now. Dropping the union-mandate in a state that was heretofore union is verrrrrrrry progressive indeed!

        The declining union membership over decades past supports that, though.

        But I find it a shame that the jobs going to Mexico with this potential expansion will be lost to unemployed Americans. I doubt we will ever know what really motivated Toyota.

        So, I look on the bright side. The upside is that more Mexicans will stay at home instead of coming over here. And those who do, we’ll ship off to the other Blue States because Blue State New Mexico cannot afford to keep them here.

        • 0 avatar
          thornmark

          The plutocrats are trying to buy immigration policy:
          http://www.nationalreview.com/article/387726/dont-give-masters-universe-their-amnesty-jeff-sessions

          Keeping tech workers’ wages down:
          http://www.usatoday.com/story/opinion/2014/07/27/bill-gates-tech-worker-wages-reforms-employment-column/13243305/

    • 0 avatar
      RobertRyan

      @highdesrtcat,
      I have stated previously that manufacturers are going from the US to Mexico. Not only is it cheaper it appears to have a solid parts infrastructure as well. I do not see this trend slowing down

      • 0 avatar
        highdesertcat

        RobertRyan, the amount of new cars entering from Mexico at the El Paso and Santa Teresa railheads for distribution to the US and Canada is staggering. Most are transported by rail North, but a very large number are loaded onto 18-wheeler car-carriers for distribution closer in-land.

        We, in America, are desperately in need of jobs, even jobs assembling cars, but the UAW with their relentless push for a piece of the pie, and the US tax code, are both driving these jobs to greener, more profitable pastures, South of the Border.

        So we have no one to blame but ourselves. And since the UAW and the US tax code are a constant distraction for manufacturers, I think it is great that they are taking their toys to play elsewhere.

        I salute all the corporations who chose tax inversion or moving to a foreign country to remain more profitable for their owners/shareholders. Employers who provide jobs in America should not be punished for doing so by having to pay higher taxes or be forced to let a union run them into the grave like the UAW did GM and Chrysler.

        I hope to see more automakers get the hell out of the US! I heard somewhere that four US Senators, among them Durbin and Levine, are pressuring Burger King not to move to Canada. Unintended consequences of the tax codes treasured by Democrats. No wonder so many Americans refuse to participate in the workforce.

        • 0 avatar
          thornmark

          But tax inversion was used in their bailout, Bloomberg

          “As part of the bailout of the auto industry in 2009, Obama’s Treasury Department authorized spending $1.7 billion of government funds to get a bankrupt Michigan parts-maker back on its feet — as a British company. While executives continue to run Delphi Automotive Plc (DLPH) from a Detroit suburb, the paper headquarters in England potentially reduces the company’s U.S. tax bill by as much as $110 million a year.

          The Obama administration’s role in aiding Delphi’s escape from the U.S. tax system may complicate the president’s new campaign against corporate expatriation. After a wave of companies announced plans to shift addresses this year, Obama last month labeled the firms “corporate deserters.”
          http://www.bloomberg.com/news/2014-08-06/obama-let-delphi-avoid-taxes-in-tactic-president-assails.html

          Delphi is UAW. What was the UAW’s role in this scheme?

          “…Saddled with legacy obligations to union workers, Delphi filed for bankruptcy protection in federal court in 2005. By 2009, with the nation in recession and GM itself tottering, Delphi was still limping along in bankruptcy, sustained by occasional cash infusions from GM.”

  • avatar
    CoreyDL

    That pinstripe guides your eye to exactly where it does not need to go on that Corolla: to the mess of panels and headlamp design. Once your eye is there, another line guides you down the fender to the cheapo hubcaps.

    • 0 avatar
      Tosh

      You are right, but that pinstripe was not added by Toyota. And the re-styled Corolla is decades more modern looking than the last frumpy thing. (not that I like the excessive creases and weird randomness of today’s cars)

    • 0 avatar
      petezeiss

      “the cheapo hubcaps”

      Which means…. steelies!
      Yay… lose the hubcaps, keep the steelies shiny black.

      • 0 avatar
        highdesertcat

        Pete, the trend in MY area is to paint the steelies the shiny metallic color Argent.

        Really looks sharp with chrome plastic wheel-lug caps.

        • 0 avatar
          Drzhivago138

          If I ever end up owning a car with plastic wheel covers, they’re coming right off. And getting replaced with 4 non-matching metal hubcaps from my collection. The only DeSoto Fit in the world.

        • 0 avatar
          CoreyDL

          On my D2 A8L I had a while ago, I replaced the grey lug caps with some chromed ones, and it really improved the look of the polished alloys. Now that it’s back in my parent’s hometown at a local dealer, I noticed it still has them.

        • 0 avatar
          petezeiss

          So is Argent basically silver?

          Shameful secret: I’ve painted a few sets of steelies to match the body color of the car. When I was about 8-years old I had a model ’58 Impala with light blue wheels and body.

          I never got over how gorgeous that looked to me.

          • 0 avatar
            danio3834

            Argent is silver in french. Sounds fancier that way.

          • 0 avatar
            CoreyDL

            Argent is also the word for “money.”

          • 0 avatar
            highdesertcat

            All true. But the Argent that is used in MY area is darker than the color Silver, but lighter than the color Gray.

            The painting pros use DuPont Argent in Quart cans thinned to spraying consistency with Paint Thinner, with compressed-air Paint Spray Guns, then finish with clearcoat after the Argent dries. Some pinstripe the rim with black, red or a bright color pinstripe of the owner’s choice.

            The DIY bunch uses Krylon Argent in the $2.99 cans at Wal-Mart, usually two cans per wheel. This process is not as long-lasting as the baked-on process of the pros. It often starts to flake after a couple of years.

            So it is easy enough to do. Just be sure to wash down the wheels with a de-greaser and paint thinner before you spray it.

          • 0 avatar
            petezeiss

            Corey, thanks for that link.

            Absolutely cargasmic.

  • avatar
    tankinbeans

    I read the title of the article to mean that there was some sort of Ford/Toyota cooperation on the next generation of the Fiesta and whatever Toyota’s counterpart would be.

    Then I read the article…

  • avatar

    VW’s been doing Mexican assembly for years, and with few to no ill effects. The Mexican-built Volkswagens are…just as delicate as the German-built ones.

    • 0 avatar
      bball40dtw

      Don’t get the VW people started on the Mexican vs German production. I’ve had good and bad with both. I tend to think it doesn’t matter all that much. I do feel that my German GTI was better than my Mexican GLI. I think that has more to do with the GTI having the updated 2.0T engine.

      • 0 avatar

        Both of mine (1997 Jetta GLX VR6 and 2014 Jetta SportWagen TDI) are Mexican-assembled, but I have had extensive time with a relatively-new Golf (German-assembled) and it felt superior only from a chassis perspective, but seemed to be no more solid or better-built than my Jettas.

        And I love that 2.0T gas engine.

    • 0 avatar
      TMA1

      Although the Golf/GTI has joined the Jetta/GLI in Mexico, engines are still sourced from both Germany and Mexico. So GTI shoppers can be choosy about where they’re getting their 2.0T power, for now.

  • avatar
    APaGttH

    If we just get rid of the unions, then the US auto manufacturing sector will thrive. So we created “right to work” states and auto factories popped up in the south.

    Now if we just get rid of those taxes (though deep incentives) and a mandated minimum wage, we can still at least have jobs and we should be grateful that we have any job at any salary.

    Who knows, maybe in another 50 years Mexico will be complaining about US illegal aliens crossing the border to build cars for the Chinese market.

    At what point do we wake up and stop this race to the bottom? The end game is pretty obvious, and it isn’t pretty.

    The average Mexican auto worker makes $3.65 US equivalent. We simply can’t compete, and the auto industry bean counters know it. (see link below – data from November 2013)

    http://www.mexicorepresentation.com/?cat=3

    • 0 avatar
      danio3834

      What’s your recommendation? Repeal NAFTA and levy tariffs on Mexican imports? Ain’t gonna happen. Consumers want low cost vehicles, especially low cost expensive vehicles.

      • 0 avatar
        bball40dtw

        danio-

        NAFTA isn’t going to get repealed, but it sucks that the Delphi and Visteon factories in Flint and Ypsilanti are closed in favor of those in Saltillo and Juarez.

    • 0 avatar
      krhodes1

      I have to agree. From a global perspective it makes sense for companies to chase the absolute lowest cost of production. But we live locally, not globally. At what point can this country no longer afford to buy anything? I have always thought that free trade agreements with countries with vastly lower standards of living and wages than our own seem like a road to disaster. It only helps the rich get richer, the middle class become poor, and the poor stay poor.

      • 0 avatar
        highdesertcat

        ” It only helps the rich get richer, the middle class become poor, and the poor stay poor.”

        Yes, but that’s the way it has always been since time immemoriam.

        I am by no means a wealthy person, but I do my damnest to make an extra buck here and there wherever I can.

        New Mexico being a community-property state, I will probably be a very wealthy man once my wife’s parents kick the bucket and all their wealth and assets divided and transferred to their four daughters. That’s what they are discussing right now, with their attorney.

        But I prefer to see my in-laws enjoy the fruits of their labor for as long as they can, and well beyond their current ripe old age of late 80s.

    • 0 avatar
      CJinSD

      I must say that I enjoy this lamentation whether I want to or not. The Obama regime is attacking industry in this country by every means available. Inexpensive domestic energy is being destroyed in favor of expensive energy utilizing equipment manufactured by security threats. Environmental regulations are being printed as fast as our trees can be turned to paper. Right to work states are beset by an NLRB that has zero use for the law. Corporate taxes are the highest in the world. Fewer people are participating in the labor market than any time in recent history due to the scarcity of jobs, but there is a brainwashing campaign calling for higher wages. Clinton sold us out to China for campaign financing and turned us into Mexico’s dream market, but the Democrats are the party that workers are supposed to vote for to look after their own interests. Obama wants to flood the job market, healthcare facilities, and our failing schools with illegal immigrants. That’ll help the dopes at the union hall! It’s a shame how fast we flushed this country down the toilet, but it is hilarious watching the people responsible for voting their own demise trying to figure out what happened.

    • 0 avatar
      petezeiss

      “We simply can’t compete, and the auto industry bean counters know it.”

      Any of those bean counters Mexican yet? Why stop at just the production workers? Hmmm…will the next racial clash be between Hector and Deepak?

  • avatar
    epc

    Why all the comments are focusing on the hourly wage and unionization? From my perspective, the trade deals that Mexico has signed with the rest of the world are an important reason for the auto manufacturers’ mad dash to Mexico also.

    VW Mexico’s cars can be sold tariff-free in EU, the US, and god-knows-how many other countries as well. VW Tennessee’s cars can be sold tariff-free in South Korea and some Middle-east kingdoms. So if you were VW’s chairman, where would you increase capacity?

    • 0 avatar
      bball40dtw

      In TN, because it makes midsized cars and CUVs. If VW can’t sell those, they cannot grow in NA.

    • 0 avatar
      CrapBox

      BINGO. Open the borders to trade and sell things that people want to buy as opposed to what you’re in the habit of producing. Don’t hold onto old industries or jobs. Let them die. Tear down the factories and retrain the workers. And when your competitors in China or Mexico win a battle, pat them on the back and celebrate their admittance to the first world, but remind them that a new game starts every working day.

      America has reinvented itself many times. It can so again, but not with 100-year-old industries.

      The weird thing is, America’s greatest strength is its adaptability, but many people perceive this characteristic to be a weakness.

      • 0 avatar
        petezeiss

        “Tear down the factories and retrain the workers.”

        To do what, exactly? Most haven’t bothered to acquire sufficient skills to become even government workers and no amount of forced, grudging retraining will equip them to compete with kids out of college and tech schools who don’t yet have family and health issues to limit their usefulness.

        “Retrain the workers” is one of those glib bromides tossed about by safely immune dworks who espouse the “creative destruction” flavor of breezy ignorance.

        • 0 avatar
          CrapBox

          Okay, don’t adapt. Follow Ghandi’s advice and become self-reliant in the production and sale of products you deem essential. He did it with cotton. You can do it with cars.

          The fact that his ideas were based on the English socialist tradition that ruined the UK and locked India into a cycle of poverty should be completely ignored. Just as an Indian textile worker should exist inside a protective bubble, spinning his cotton on a dirt floor, an American auto worker should expect the “arsenal of democracy” to continue unchanged 70 years after the end of WW II.

          I’d say that if you can’t think of new ways to generate wealth and add value, and that if you truly expect to follow in your grandfather’s footsteps in all respects, then you should excuse yourself from the competitive arena.

          • 0 avatar
            petezeiss

            I thought Ghandi’s advice was:

            “Breed, breed, breed dill India make a sahdeen gan seem roomy. Dey gan’t gill all of us!”

  • avatar
    Volt 230

    Is it any wonder our middle class is dwindling more and more all the time and some here are actually pleased that more and more mfg jobs are moving to Mexico???

  • avatar
    Roader

    Yes, we should yearn for the manufacturing/unionized labor ideal of the 1950s. All we need to do is what we did in the 1940s: bomb the crap out of half of the other industrialized world: Japan, Germany, Italy, etc. And let the other guys bomb the crap out of the rest of the industrialized world: Britain, the USSR, Korea, China, etc.

    Then everything would be great! The US would have a monopoly on manufactured goods, blue-collar pay would skyrocket, and unions would once again represent over a third of the US workforce.

    What’s not to like? Then we wouldn’t have to deal with this pesky, “competitive” crap. We’d be #1 again!

    • 0 avatar
      APaGttH

      Poppycock. By 1947 – yes just two years after the shooting stopped in WW II, EU GDP had outstripped the United States.

      Reconstruction has a way of creating a huge number of jobs and demand for durable goods.

      The argument that the US had no competition in the world for goods and services by 1950 is a pant load.

      • 0 avatar
        highdesertcat

        Europe looked a lot more advanced than the US during the seventies when I was stationed there. While my mom and dad were complaining about crime and run-down cities in the US and were “mad as hell, and wouldn’t take it any more!” we were enjoying great times in Europe.

        So much so that my mom and dad retired and came over to Europe to spend two years just traveling around Europe visiting relatives in Portugal and Germany, using my quarters at Patrick Henry Village in Heidelberg as home base.

      • 0 avatar
        Roader

        1950 GDP (PPP) in 1990 US$ millions:

        United States: 1,455,916
        UK + West Germany + France + Italy: 998,653

        Five years after the war, US economic output was half-again larger than the four largest Western European economies combined. I doubt adding the tiny economies of Austria or Switzerland, etc. would bring it up to the US’s level.

        Or are you saying we should add the communist idiocracies’ GDP into Europe’s total?

    • 0 avatar
      Big Al from Oz

      @APaGttH,
      I do think you should research you comment a little. Even in the mid 50s the GDP per capita in France was only equivalent to 25% of the US.

      Even during the late 50s and into the 60s the EEC were attempting to export vehicles into the US as they could produce them cheaper.

      That’s why DOT was formed and the US ended up with the Chicken Tax and differing vehicle regulations. The EU could produce cheaper and better product back then. Too much competition for Detroit.

      That is why Lyndon Johnson commenced with the Chicken Tax in 1964 and DOT in 1967 at the behest of the UAW and Detroit manufacturers.

      http://www.university-world.com/europe/europe_economy.html

    • 0 avatar
      petezeiss

      Nice plan, Roader. Let’s get those B-17s, 24s and 29s flying again!

      Except, you’d also have to recreate the industrial environment of ’45 to ’60 in order to have a similar need for number of people employed per product made. So, no robots, computers, digital controls, advanced materials, forming techniques, or plant safety establishments that result in your barely knowing any amputees or guys with purple faces from chemical burns.

      Now, that would all be fine by me if I could be an office professional whose only environmental hazard would be using carbon paper if the secretaries were busy (and barely any deodorant use), but I don’t how today’s corporate officers, directors or investors would feel about relinquishing 70 years worth of production engineering for the sake of a dramatically larger payroll.

      I’m afraid that no matter how attractive it seems, recreating an American industrial environment where the average schmoe would once again be a desired asset isn’t really in the cards.

  • avatar
    Big Al from Oz

    Mexico? Why?

    http://www.nytimes.com/2014/06/01/world/americas/as-ties-with-china-unravel-us-companies-head-to-mexico.html?_r=0

    http://www.businessweek.com/articles/2013-06-27/four-reasons-mexico-is-becoming-a-global-manufacturing-power

    These two articles are a great place to start if you want to understand “The Why to Mexico Move”.

    I do think the UAW does influence the move to Mexico to some degree, abeit, small.

    The UAW are anti-progressive and are a thorn in the side nowadays of many Americans. They are parasites now looking for more hosts down in the South.

    Money and power is what the UAW is all about, or they’d not charge a red cent for their efforts.

    We have volunteer organisations that look after our Military members, I don’t pay a cent as they are volunteers to the cause. They don’t expect to be paid.

    Real people, not parasitic.

  • avatar
    DenverMike

    @Derek Kreindler,

    “Currently, Toyota has a small facility in Tijuana that produces the Tacoma pickup from CKD kits…”

    Can you expand on that?

    That’s the second time I’ve heard that said by TTAC staff in passing, with no explanation. After a search, I haven’t seen it said from anyone, anywhere else.

    The whole thing with the Tacoma build is a little fishy. The Tacoma is built in San Antonio too, but Tijuana only builds Tacoma crew cabs for local and Canada consumption mostly. Yet anywhere I search in the US for used Tacomas, Tijuana Tacomas (1st VIN digit is a “3”) are found everywhere and plentiful, along side San Antonio Crew cab Tacos.

    Then the Tijuana facility builds all the Tacoma pickup beds for San Antonio too.

    • 0 avatar
      Big Al from Oz

      @DiM,
      Rather than ask an inane questions as you normally do, why don’t you let your fingers do the walking? Use the internet.

      It’s not hard, but it appears you do have some difficulty doing this. Considering many of your comments.

      http://www.toyotapart.com/Tacoma-Technical-Information.html

  • avatar
    DenverMike

    Corolla buyers don’t really care where they’re made. They couldn’t tell you if it’s fwd or rwd.

    Just keep the top money makers, top marques hecho en the good ol’ USA. Camry, Tundra, etc.

    Like how would it look if the Hellcat was made in Mexico? Or the Challenger? These buyers know what they’re getting and care where it’s made. The Camaro from Canada gets a pass.

    Although Silverado and Ram fan boys aren’t happy about there trucks being made south of the border. But their extreme loyalty runs deep.

  • avatar
    Dan

    Inevitable when you have a free trade agreement with another country so much poorer and cheaper than this one. What’s in it for Toyota to build a plant here? Higher labor costs, higher taxes, extremely expensive EPA rules, an outright insane legal climate. Of course they’re going to go to Mexico instead. They’d be negligent not to.

    The Republicans want to race those labor costs to bottom and pay 4 bucks an hour here, too.

    The Democrats want to put everyone involved on both sides of the border on welfare for life, and pay for it with even higher taxes on what business they haven’t driven out yet.

    I want to throw up.

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